| If you're looking to upgrade, modernize, or simply | | | | owners appreciate having a banker to assist with the |
| need more machinery, you have three different | | | | transaction. On the other hand, loans encumber |
| methods of purchasing: CASH, LOANS, and | | | | assets (blanket liens) and restrict companies looking |
| EQUIPMENT FINANCING/LEASING. As experts in the | | | | to diversify their financing portfolio. And of course, |
| field, it's our job to help you understand how each | | | | any business that takes a loan also must consider |
| one works, and explain which option might be more | | | | how expensive interest will be, in the long term. |
| appropriate for your business goals. | | | | There's a third option for equipment-intensive |
| Many companies today use CASH resources to | | | | businesses that are looking to satisfy their current |
| finance equipment purchases. The obvious benefit is | | | | needs, but also have an eye on future growth: |
| that it saves money by freeing a company from a | | | | EQUIPMENT LEASING AND FINANCING. This option |
| lease or interest payments from a loan. However, | | | | gives businesses flexibility by allowing them to |
| there's a downside to using cash: This may restrict a | | | | diversify their financing portfolio and not be limited to |
| company's ability to invest in areas like marketing, | | | | one source. Leasing can also provide substantial tax |
| employee growth, and research and development - | | | | incentives. Since leasing allows a business to hold onto |
| which may, in turn, limit the growth of the company. | | | | - and save - money, owners can invest in |
| Some corporations take LOANS from local banking | | | | business-building activities like advertising and |
| institutions. This is currently a very attractive option, | | | | marketing, research and development, and human |
| since interest rates are low. Also, many business | | | | resources. |